2:1 bonus share, 1:10 stock split: Multibagger stock in focus today. Here's why (2024)

Bonus shares, stock split: Captain Pipes shares are one of the multibagger stocks that Indian stock market has delivered in recent years. This multibagger stock is in focus today as it is trading ex-bonus and ex-split today. The small-cap company has declared issuance of bonus shares in 2:1 ratio and stock split in 1:10 ratio. This means, the company is going to reward its eligible shareholders with two bonus shares for each company share they hold and after the stock split, a shareholders total share will jump 10 times.

This means, due to bonus share issue, one's shareholding will jump three times and after stock split, this 3 times share will go up to 30 times. In short, a shareholders shareholding will jump 30 times after this 2:1 bonus share and 1:10 stock split, means after this stock split and bonus share, Re 1 rise will mean ₹30 rise for the bonus and stock split beneficiary shareholders from now onwards.

The small-cap multibagger stock has already informed Indian bourses about bonus shares citing,, "This is to inform you that the Board of Directors of the Company in its meeting held today i.e. on Friday, 27 January, 2023 started at 3:30 P.M. and ended at 5:15 P.M. at the Registered Office of the Company inter alia, has considered the following, subject to the approval of Shareholders in ensuing Extra Ordinary General Meeting: - Issue of 2 (Two) Bonus Shares for every 1 (One) Equity Shares held by the Equity Shareholders of the Company as on "Record Date". The Bonus Issue of Equity Shares is subject to the approval of the shareholders and other applicable statutory and regulatory approvals, as may be required."

Informing Indian bourses about stock split decision, the small-cap company said, "This is to inform you that the Board of Directors of the Company in its meeting held today i.e. on Friday, 27 January, 2023 started at 3:30 P.M. and ended at 5:15 P.M. at the Registered Office of the Company inter alia, has considered the following, subject to the approval of Shareholders in ensuing Extra Ordinary General Meeting:- Alteration in Capital of the Company by Split/Sub-division of 1 (One) Equity Share of the Company having face value of Rs. 10/- each into 10 (Ten) Equity Shares of the Company having face value of Re. 1/- each."

Later on, the BSE listed small-cap company informed that record date for issuance of bonus shares and stock subdivision has been fixed on 3rd March 2023.

This multibagger stock has delivered more than 700 per cent return in last one year whereas it delivered to the tune of 35 per cent in YTD time.

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ABOUT THE AUTHOR

Asit Manohar

Chief Content Producer at Live Mint Digital Team